Investors choosing between State Street SPDR S&P Bank ETF (NYSEMKT:KBE) and First Trust Nasdaq Bank ETF (NASDAQ:FTXO) could weigh the State Street fund’s lower costs and broader diversification against the First Trust fund’s recent momentum and concentrated focus on megacap…
nancial institutions. Both ETFs provide targeted exposure to the U.S. banking sector, but they take fundamentally different paths to reach that goal
The State Street fund casts a wider net across the industry, whereas the First Trust fund uses a smart-beta approach to select and weight its portfolio based on specific fundamental metrics. Snapshot (cost & size) Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
Dividend yield is the trailing-12-month distribution yield. The State Street fund is notably more affordable with a 0.35% expense ratio, saving investors $2.50 annually for every $1,000 invested compared to the First Trust fund. Additionally, KBE offers a higher payout with a 2.30% yield.